Introduction to Master Data Management

What is "master data management?

Master data management is essentially a method of centralization for a system of data. What does this mean? Think of it like an effort to unite all the people under one king. Essentially, all data serves under one authority of organization. This technology is a vital tool for managing a system. Master data management seeks to standardize all data in the system for the master file. This master file is like the "king" of all the data in the system. The technology is great for market analytics; centralizing data will allow you to make more effective decisions.

Why do people use it? What problems does it address?

This method of organizing data is useful because it performs very vital operations for organization. It is best for large scale companies who need to organize a vast amount of files, particularly for analytics. Having all data centralized under an authoritative unit allows analytics that view data in not just the abstract but in the specific. This analysis, as stated above, is the core of master data management's application. When there is an excessive amount of data, an MDM solution is what is often desired.

Key considerations for master data solutions

MDM, as a burgeoning technology, needs important considerations. If you're going to use it, you need a plan to consolidate the data. Make sure not to arbitrarily delete files from the master data system, as it might lose you very important data. Make a centralized plan to consolidate the data. You really have to make sure you have an amazing IT dept, as they are now the arbiters of the data.